If price falls by 1 percent and quantitydemanded rises by 2 percent, then the priceelasticity of demandO A. Is 0.5OB. is inelastic over that rangeOC. is elastic over that rangeO D. cannot be calculated from thisinformation

Price elasticity of demand is a measure of the responsiveness of the quantity demanded of a good or…

If price falls by 1 percent and quantity demanded rises by 2 percent, then the price elasticity of demand O A. Is 0.5 B. is inelastic over that range O C. is elastic over that range O D. cannot be calculated from this information

If price falls by 1 percent and quantity demanded rises by 2 percent, then the price elasticity of demand O A. Is 0.5 B. is inelastic over that range O C. is elastic over that range O D. cannot be calculated from this information

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter20: Elasticity: Demand And Supply

Section: Chapter Questions

Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...

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Question

If price falls by 1 percent and quantity
demanded rises by 2 percent, then the price
elasticity of demand
O A. Is 0.5
OB. is inelastic over that range
OC. is elastic over that range
O D. cannot be calculated from this
information

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